“We would like to grow and with BizX we have gotten a new stream of patients.” Vaughn – Dr. Gregory Vaughn, DDS. BizX Member since December 2004.
Accounting
All barter transactions conducted through BizXchange are compliant with the United States’ general accepted accounting principles (GAAP) and the Sarbanes-Oxley Act.
In transactions in which BizXchange takes a position in an unutilized asset and provides trade credits for future fulfillment, the United States GAAP require that a loss be recorded when it is validated. The sale of an underutilized asset is recorded in the same year that the company receives payment. Direction for corporate barter transactions begins with Accounting Principles Board opinion Number 29 and is specifically addressed with EITF Abstract 93-11. The Sarbanes-Oxley provides general revenue management with SAB 101.
In situations that require BizXchange to make a direct purchase from a company in a specific dollar amount in any form of recognized currency, BizXchange reports this in the United States through a 1099B. BizXchange is recognized as a third party record keeper of barter transactions by the Tax Equity Fiscal Responsibility Act, or TERFA. As such, BizXchange has the same reporting requirements as banks, savings and loans, credit unions and stock exchanges. All tax payments are applicable as if the trade credit revenues and purchases were made in cash.
Reporting requirements for trade transactions differ between countries. Depending on the appropriate trade solution and the county in which the transaction occurs, BizXchange will work closely to assure that all transactions meet appropriate legal financial requirements.
We encourage you to consult a CPA or tax professional to determine the best way to record and account for trade business.
